Australia’s health insurance premium problems are being mirrored in the US, where premiums have risen 13% over the past year. AM Best says the cause is soaring healthcare costs, even at a time when the insurers are generating record profits.

In a special report, AM Best said the rising costs are driven by new technology, provider-group consolidations and insolvencies and a shortage of nurses and other skilled healthcare professionals. As well, increasing medical liability claims and damage awards are contributing to rising premiums for physicians, who then pass the cost on to patients.

Healthcare spending in the US is expected to double to $4.9 trillion by 2011 and reach 17% of the country’s gross domestic product.